South African mining equipment and related services: Growth, constraints

and policy*

David Kaplan Department of Economics University of Cape Town

David.kaplan@uct.ac.za

MMCP Discussion Paper No. 5

March 2011

Making the Most of Commodities Programme (MMCP)

2

MAKING THE MOST OF COMMODITIES PROGRAMME

Like many other developing economy regions, Africa is benefitting from a sustained boom in commodities prices. Received wisdom has been that commodities production is an inherently enclave activity and that it undermines the viability of industry. The Making the Most of Commodities Programme challenges this negative view of the commodities sector. It’s research analyses the determinants of backward and forward linkages, identifying policy responses which will broaden and deepen them. In so doing it contributes both to achieving sustainable growth and the spreading of benefits to a wider population. By incorporating younger researchers, building a research network, and dialogue with policymakers, the MMCP also seeks to build analytical and policy capacity, and to influence policy outcomes. The MMCP focuses on a diverse range of commodity sectors in a number of African economies, as well as on key infrastructural determinants of effective linkage development. A number of common factors are identified which will increase linkages beneficially and which lend themselves to policy intervention - the role of ownership, the nature and quality of infrastructure, the national system of innovation, spillover of skills to and from the commodities sector, linkages in regional economies and the nature and consistency of policies directed towards the commodities sectors. The MMCP country/commodity Discussion Papers are: 1. ‘Linkages in Ghana’s Gold Mining Industry: Challenging the Enclave Thesis’, Robin

Bloch and George Owusu 2. ‘Chinese Construction Companies in Angola: A Local Linkages Perspective’, Lucy

Corkin 3. ‘Development and Knowledge Intensification in Industries Upstream of Zambia’s Copper

Mining Sector’, Judith Fessehaie 4. ‘The drive to increase local procurement in the Mining Sector in Africa: Myth or reality?’,

Chris Hanlin 5. South African Mining Equipment and Related Services: Growth Constraints and Policy,

David Kaplan 6. Linkages in Botswana’s Diamond Cutting and Polishing Industry’, Letsema Mbayi 7. The Nature and Determinants of Linkages in Emerging Minerals Commodity Sectors: A

Case Study of Gold Mining in Tanzania, Vuyo Mjimba 8. Enhancing Linkages of Oil and Gas Industry in the Nigerian Economy, Ademola Oyejide

and Adeolu Adewuyi 9. ‘The contribution to local enterprise development of infrastructure for commodity

extraction projects: Tanzania’s central corridor and Mozambique’s Zambezi Valley’, Dave Perkins and Glen Robbins

10. ‘The Tropical Timber Industry in Gabon: A Forward Linkages Approach’, Anne Terheggen

11. ‘Backward Linkages in the Manufacturing Sector in the Oil and Gas Value Chain in Angola’, Zeferino Teka

A MMCP Synthesis Monograph is currently being written by the MMCP Project Leaders: Raphael Kaplinsky (Open University), David Kaplan and Mike Morris (UCT). The MMCP is a collaborative research and policy programme between Policy Research in International Services and Manufacturing (PRISM), Economics and CSSR, University of Cape Town and Development Policy and Practice, Open University. The International Development Research Centre of Canada is the principal funder, with additional funding from the William and Flora Hewlett Foundation, Harry Oppenheimer Institute, and Open University. Further information and other Discussion Papers can be downloaded from: http://commodities.open.ac.uk/discussionpapers or www.cssr.uct.ac.za/prism/projects/mmcp

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Abstract* South Africa has the largest, most diversified and longest established mining sector in Africa. South Africa has developed considerable expertise in mining and mining related supply industries and it has a number of firms located at the global technological frontier. This report provides measures of South Africa’s success in export markets and of the technological capacities that underpin that success. Although South Africa currently has a significant cluster of firms in mining equipment and related services which are at the global technological frontier, its competitive position is being undermined both as a site for production and for research and development. The report analyses the factors undermining South Africa’s competitive position, as well as examining the policy failures in meeting these challenges. ‘South African Mining Equipment and Related Services: Growth, Constraints and Policy’, David Kaplan, MMCP Discussion Paper No 5, University of Cape Town and Open University, March 2011

ISBN: 978-1-77011-236-0 * Some of the research for this paper was undertaken by the author for a World Bank project, Fostering Technology Absorption in Enterprises in Southern Africa. The project report is still to be

published.

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Executive Summary

South Africa has the largest, most diversified and longest established mining sector in Africa.

South Africa has developed considerable expertise in mining and mining related supply

industries and it has a number of firms located at the global technological frontier.

This report is concerned with the development, but more especially with the current state of

and future prospects for the mining equipment and related mining services industries. In this

regard, the report makes ten key propositions:

1. South African mining activities have, from a very early stage, required the utilisation

of advanced technologies and systems.

2. The local deployment of such technologies and systems combined with a particular

structure of the South African mining industry and state directed policies, allowed for

the early development of considerable development of local technological expertise.

State policies and linkages with the National System of Innovation (NSI) have

accordingly been critical. Market structure, rather than ownership, has also played an

important role.

3. The technological content of mining and mining related activities everywhere has

increased significantly over the last two decades as a result of a number of factors –

including increased globalisation, market segmentation and the changing role of

MNCs and the engagement of generic technologies – particularly IT.

4. This significantly enhanced technological content of mining related activities

coincided with two critical changes in South Africa: the decline of mining output for

some minerals, notably gold and the end of apartheid in 1994. As a result, South

African mining firms have engaged in substantial expansion abroad. This, in turn, has

created significant opportunities for exports of mining related equipment and services.

5. South Africa has a significant cluster of firms in mining equipment and related

services which are at the global technological frontier. This is evident in respect of

trade (exports), IP and leading products. Indeed, this cluster is the only significant

area of industrial activity where South Africa is located at the global technological

frontier.

6. South Africa‟s competitive position is however being undermined – both at the

“lower” manufacturing end and at the “higher” end of R&D and new product

development.

7. These issues are not currently being addressed. The sector receives very little state

support and, other than downstream beneficiation, which is in any event ill-advised,

there is no defined strategy for the sector. Polices to meet these challenges, both at the

“bottom” and at the “top” are urgently required.

8. The major thrust of government‟s strategy currently is beneficiation i.e. government

attempts to encourage activities downstream of mineral production.

9. This strategy is misplaced and should be replaced by a strategy that seeks to

encourage the “lateral “migration of firms and technologies into new products and

new markets.

10. Such policies should be designed and implemented in consultation and in concert with

the firms and with the industry and export associations.

This study utilises patent and trade data supplemented by interviews. Interviews were

undertaken with ten companies; the Chamber of Mines; the export association (x2) and the

major science council engaged with this sector (Appendix 1). Interviews were focused on two

issues: the linkages between technology development and exporting and the opportunities and

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constraints that currently face the sector both in relation to technology development and in

relation to export markets.

This report comprises six sections:

Section 1: The development of technological competencies in mining and mining related

activities.

Section 2: The evidence for and the measurement of South Africa‟s technological

competencies

Section 3: Why is South Africa competitive?

Section 4: Strengths and weaknesses

Section 5: Current policies and supports

Section 6: Developing an alternative strategy and policies in order to Make the Most of

Commodities.

1. The development of technological competencies in mining and mining related activities.

There is a widespread perception that natural resource (NR) based activities, and mining in

particular, by contrast with manufacturing industry, are not the sites of significant

technological change. Together with the purported long term decline in the prices of

commodities relative to the prices of manufactures, low levels of technological change were

the foundations for the Singer – Prebisch thesis in favour of a development path based on the

development of manufacturing industry. Singer argues that “...they (NR based activities) do

not provide the growing points for increased technological knowledge, urban education, the

dynamism and resilience that goes with urban civilisation as well as direct Marshallian

external economies.” (Singer, 1959: 476 quoted in Marin et al, 2009:4).

The new growth theory places technological change and technology spillovers at the center of

the growth process. If indeed NR activities are characterised by very limited technological

change and by limited spillovers to other sectors and activities, in terms of the new growth

theory, it would follow that NR activities are not a sound basis for long term development.

From this perspective, an important role of policy for commodity dependent developing

countries is accordingly to ensure increasing diversification into other activities, notably

manufacturing.

However, there is a growing recognition that NR activities are increasingly subject to

technological change. Indeed as Porter notes, technological change is increasing in all sectors

and activities.1

There are many factors that have lead to increasing technological change in mining and

mining related activities. These factors include inter alia the growing utilisation of generic

transformative technologies especially ICT; the reorganisation of the industry to allow for the

growth of specialist mining services companies; the segmentation of markets; the

intensification of technological challenges particularly as the industry has to meet stricter

safety and environmental standards and to discover and exploit more marginal resources.

1 “..all industries today are high-tech. all industries use information technology, new materials, and

new kinds of technology to dramatically improve the way they do things. There are no low-technology industries; there are only low-technology companies that have not yet woken up to the potential of technology to transform what they do.” Porter, 1990 quoted in Upstill and Hall, 2006:138.

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Marin et al provide a detailed discussion of the forces that are driving innovation in NR

activities. They divide these forces into four categories:

Market requirements – product segmentation; public opinion and environment

S&T advances – ICT and other new technology paradigms such as biotech. And

nanotech.

Market context – globalisation; outsourcing; environment and other regulations;

government policy

Market volume – the intensification of traditional challenges, including the

diminishing quality of resources.2

The literature sees technological progress as being central to the minerals industry as a

relatively recent phenomenon, coinciding with the introduction of the ICT paradigm in the

organisation of the global mining corporations (Marin et al, 2006; Upstill and Hall, 2006).

However, at least in the case of South Africa, sophisticated technologies and developments in

basic sciences such as Chemistry were widely utilised in order to resolve critical problems in

relation to local mining deposits for almost a century. Moreover, while these technological

capacities were initially imported skills, they were, at least in some important instances,

rapidly localised in the early development of the Witwatersrand

For example, the development of the cyanide process in the 1890s “...led to an influx of

metallurgical professionals from around the world and gave birth to one of the early

professional societies in Johannesburg, the Chemical and Metallurgical Society or the

„Cyanide Club‟ as it was popularly known.” (Pogue, 2006:82)

However, while there is little doubt that NR activities in general, and mining related activities

in particular, are increasingly the site of technological change, this is not a sufficient basis to

assert that such activities can be an effective locus for development. There are two reasons

for this.

First, it depends on the relative rather than the absolute standing of NR activities. Minerals

are often regarded as low technology because the conventional indicator used to determine

the technological intensity of an industry is R&D expenditure as a percentage of turnover.

Utilising this measure Basic Metals and Other Metallic Mineral Products are well below

those of other industries. However, much of the development expenditures in this sector are

non-R&D expenditures e.g. on design, experimentation and scaling up. The R&D measure

when applied to the mining industry also ignores more technology intensive activities such as

exploration. Finally, technological change in the sector may be embodied in the capital goods

and intermediates that are employed. The capital good and intermediate industries are

characterised by far more significant R&D activities, although here too, may research

activities are of the applied type rather than formal R&D. This could be captured by the ratio

of acquired R&D intensity i.e. the R&D embodied in capital goods and intermediates

employed to simple R&D intensity. “The Basic Metals and Other Metallic Products sectors

rank highest of all industry sectors by this measure…” (Upstill and Hall, 2006:138).

Second, even if NR activities are increasingly subject to technological change, the effect that

this will have on overall development is dependent on the impacts of that technological

change on other sectors and activities – i.e. what are the technology spillover effects? Here

again, it is important to draw a distinction between different activities engaged in mineral and

2 Marin et al, 2009: 9.

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mineral related sectors. In particular the input supplier industries, providing intermediates and

capital goods and support services, employ sophisticated technologies and provide products

to the mining industry which have potential in other markets and for other sectors.

This report proposes that policy be directed at supporting the movement of companies that

supply the mining sector and that have sophisticated technological competencies to spread

those competencies “laterally” so as to engage in new activities and new markets.

The development of technological competencies in the field of mining and related activities

can potentially impact on growth through three main channels:

Extend the life and returns on mining investment as new knowledge is applied

Develop new areas of mining equipment and specialist services which can be realized

on global markets

Enhance knowledge and competencies in other areas through technology spillovers and

migration from mining and mining related areas.

Briefly, dealing with each of these issues in turn in relation to South Africa:

Extending the life and returns to mining: In essence, as in the US mining sector, many

South African mineral deposits were not especially rich. It was only the application of

technological knowledge that allowed for the deposits to be profitably exploited and the

life of the deposits to be extended such that large scale investment was justified.

Transition to the supply of equipment and specialist services: The much acclaimed

Scandinavian model whereby competencies in raw material extraction are increasingly

shifted to the development of competencies in the supplier industries – capital

equipment and specialist services - is evident in South Africa. As mining has declined,

there has been an increase in mining equipment and specialist services such as

consulting and exploration supplied to global markets albeit with a heavy concentration

on regional markets. This shift would appear to have occurred without government

support. However, this would be misleading. Finally, there are clear indications that the

development of capacities in mining equipment and specialist services is currently

being restrained by a number of factors. These issues are discussed further in section

four.

The Migration of skills/competencies to other areas: technical knowledge developed in

mining tends to be mining specific. Mining, unlike some other areas such as electronics

or chemicals, is, in general, not an area that produces knowledge and innovation that

are widely utilized elsewhere. From interviews, we could find only a few examples of

significant technological migration from mining and mining related areas to other areas.

There are indications that whatever potential there is for migration, this is particularly

limited in the case of South Africa.

The most important impact of the development of competencies in the field of mining and

related activities has been the development of a globally competitive industry supplying

mining equipment and specialist services, not only to the mining industry but also more

broadly, thus providing the potential to enhance development.

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2: The Evidence for and the measurement of South Africa’s advanced technological competencies

South Africa‟s advanced position in mining equipment is evident in two respects:

The first is in Intellectual Property (IP), most notably patents. South Africa has a significant

concentration in mining and mining related areas. Moreover, these patents are of high value.

Even subsidiaries of mining TNCs undertake considerable development work in South

Africa, feeding this back into their operations and R&D centers.

The second is in global trade, notably exports. South Africa‟s exports of mining equipment

are large and have been increasing rapidly. Mining equipment dominates the export of capital

equipment from South Africa. Moreover, mining equipment exports have a high local value

added – high compared to other exports such as autos for example. The South African Capital

Equipment Export Council estimates local content for mining equipment at approximately

90% (Interview). High local content of exports is a further indication of significant local

competencies in this area.

Data is provided on patents and on export performance below.

2.1 Patents

Patents are a major measure of output of inventive activity. Both the number of patents and

the quality of patents can be measured. Where a country has a significant clustering of high

quality patents, this is a clear indication of innovative capacities and activities that are located

at or close to the global technological frontier. Mining technology in South Africa is

compared to technology in a number of areas utilizing patent counts and patent values.

2.1.2 Methodology3

An examination of South African patents at the USPTO revealed the existence of two

significant technological clusters broadly labelled "Mining Technologies" and "Fuel

Technologies." Each cluster represented a much larger share of total patenting in South

Africa (app. 4.5%), than in other countries (less than 2%) - USA, Australia, Canada, etc.

These two clusters seem to contain groups of relatively highly cited South African patents.

Patents belonging to these two technological clusters were thus identified using 3-digit USPC

classes and the quality of these patents were then compared to that of similar patents in some

other countries - US, Australia, and Canada.

The following were compared:

o average number of citations received

o average number of truncation-corrected citations received

o average number of citations received for top quartile of patents in a cluster

o average number of truncation-corrected citations received for top quartile of patents in a

cluster

o all the above measures for "other" patents (those not belonging to either of the two

clusters) - to have a benchmark

o average age of patents - as a rough check of the validity of the above comparisons a

3 All patent data were undertaken by Lee Bransteter of Carnegie Mellon University for a World Bank

Study entitled Closing the Skills and Technology Gaps In South Africa

9

The truncation-correction refers to the fact that it takes time for citations to arrive. Older

patents will naturally have more citations than younger ones. A truncation-correction allows

for a more “fair” comparison between samples of patents with different age distributions,

facilitating a comparison of differences in average citations received.

Each patent in each of the two clusters was matched randomly to a patent in the US,

Australia, and Canada that was applied for in the same patent class at the same time. The

samples were then tested to assess whether the mean citations received for the entire sample

and mean citations received for the top quartile of the sample are equal across countries.

2.1.3 Mining Technologies

The descriptive statistics comparison shows that South African mining patents are much more

cited than other South African patents. While the overall quality (as measured by the number

of citations received) of South African patents is somewhat lower than that of US patents (a

part of which might be due to the home-country bias), and slightly lower than that of

Australia and Canada, the citedness of the cluster of mining technology patents is on par with

that of the same cluster of US patents, and markedly higher than that of the same cluster of

either Canadian or Australian patents.

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Table 1: Quality Comparison – Mining Technologies, Individual Patent Based (USPTO Data)

A patent belongs to the “Mining Technologies” cluster if it belongs to one of the following 3-

digit USPC classes: 299 - Mining or In Situ Disintegration of Hard Material, 051 - Abrasive

Tool Making Process, Material, and Composition, 023 - Chemistry: Physical Processes, 037 –

Excavating, 075 - Specialized Metallurgical Processes, 172 - Earth Working

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2.1.4 Fuel Technologies

There is a second cluster of South African patents – in fuel technologies. But, by contrast

with mining and mining related patents, South African fuel technology patents are less cited

than patents in either of the three comparison countries.

Table 2: Quality Comparison – Fuel Technologies, 3-Digit USPC Class Based (USPTO Data)

12

A patent belongs to the “Fuel Technologies” cluster if it belongs to one of the following 3-

digit USPC classes: 210 - Liquid Purification or Separation; 208 - Mineral Oils: Processes

and Products

This admittedly somewhat rough comparison seems to indicate that there indeed exists a

South African cluster of excellence in mining technologies, but not in fuel technologies

(where coal liquefaction and similar patents dominate the cluster). Moreover, mining and

mining related patents are the only significant South African cluster of high value patents.

2.1.5 Further testing – matching patents

Utilising a matching methodology to match each South African patent to a similar American,

Canadian, or Australian patent - matching by application year and 3-digit USPC class –

gives somewhat weaker results. These hypothesis tests show that the average number of

citations for a mining technology South African patent is greater than that of an identical

Australian patent, but it is not greater than that of a similar Canadian or US patents.

Table 3: Quality Comparison, Hypothesis Tests – Mining Technologies, 3-Digit USPC Class Based (USPTO Data)

Table 4: Hypothesis Tests, Hypothesis Tests - Fuel Technologies, 3-Digit USPC Class Based (USPTO Data)

Now, it is conceivable that SASOL‟s patents, while very limited compared to the patent

portfolios of the global petrochemical giants it competes with, are of extremely high quality.

Unfortunately, our patent analysis does not support this view. In fact, comparisons of

forward citations to similar patents suggests the opposite – that in the particular areas SASOL

has focused on, its patents are of systematically lower quality than that of its competitors.

For every comparison group, the foreign patents are more highly cited than SASOL patents.

In four of the five comparisons (dependent on the level of classification of patent class), the

differences – always large – are statistically significant at conventional levels, despite the

small number of patents.

The final segment of our quest for additional clusters of inventive excellence in South Africa

focused on Biotechnology. U.S. biotechnology patents are located in one of two US 3-digit

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patent classes, 435 or 800. We therefore examined patents awarded to inventors based in

South Africa in these patent classes and compared them to patents awarded to inventors

elsewhere. The first observation comes from comparing the scale of biotech patenting in

South Africa versus more advanced countries. We identified a cumulative total of 69 South

African biotechnology patents granted to date. Over the same period, the USPTO granted

61,825 American biotech patents, 3,130 Canadian patents, and 1,142 Australian biotech

patents. The number of South African patents made statistical tests of quality feasible, but

the numbers are so small that they weaken the statistical results.

Nevertheless, the statistical results suggest that South African biotech patents do not appear

to be internationally distinctive in terms of their quality.

2.1.6 Conclusion

Mining and related activities is the only cluster where South Africa has a significant number

of patents and where the patents have a high value. Despite all the state support over many

years for SASOL, patent numbers are very limited and the quality is low. In biotechnology,

which is a further area that government has singled out for particular attention and support,

the position is even weaker.

2.2 Trade

The level and particularly the growth of exports of mining equipment and specialist services

is one clear manifestation of global competitiveness. This is particularly so in the light of the

fact that there is very little state support of any significance.

Exports can be divided into two broad categories. The first category is exports related to new

projects – new mines or mineral processing activities. The second category is the after-market

– to existing mines or mineral processing activities. The latter is much more critical, but the

competitive edge to supply to the after-market is often secured through firms being engaged

in projects from the outset.

The determination of specifically mining exports is a complex issue. Since trade data is

categorized by product rather than by customer, it is very difficult to determine precisely

what is destined for mining as opposed to other markets.4 The South African Capital

Equipment Council (SACEC) has assessed, at least in the case of South Africa, at an eight-

digit HS level, which capital equipment products would be destined for the mining sector.

SACEC categorization has been used in the data below.

Currently exports of mining capital equipment are running at approximately $(US) 4billion.

Exports have been growing rapidly – in nominal terms quadrupling since 2000.5 This growth

is certainly aided by the commodities boom.6

4 Despite a considerable trawl of the literature, no clear definition of mining capital equipment as

opposed to capital equipment in general could be found. 5 Prior to 2000, there were a number of changes in the definition of products which make it difficult to

construct a clear time series. 6 Note that this excludes mining based services. The export of mining-based services is extensive and

growing very rapidly. Many specialist companies exist in this area. No data is however yet available.

14

Most companies interviewed have been increasing the share of their product that is exported

and some have seen phenomenal increases in export – both as a share and as a percentage of

turnover. One company exported R80m. in 2000 and current exports are over R1billion –

raising the export share from 15% to 45% of turnover.

Mining equipment dominates the export of capital equipment.

As a share of total South African commodity exports, mining capital equipment has

fluctuated, but with an overall rising trend.

A significant amount of exports result from the global expansion of South African mining

houses which then utilize the equipment or services of the South African suppliers with

whom they have a pre-existing and often long time relationship. The extent to which South

African exports follow South African investments globally is an issue that needs further

investigation.

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2000 2001 2002 2003 2004 2005 2006 2007 2008

Mining Capital Equipment Exports ($million)

Total Capital Equipment Exports

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Mining capital equipment as a percentage of all commodity exports

Capital equipment as a percentage of all commodity exports

15

African countries – notably in the Southern Africa region – are the major markets for South

African exports of capital goods. Eight of the top ten destination countries are Africa and all

except Nigeria are located in the region.

Mining equipment is one of South Africa‟s largest exports; 8.5% of total exports in 2005-

2009 and 55% of total capital equipment exports. Unfortunately, the services export data do

not allow for mining services to be isolated. But, net export earnings are likely to be

substantial and significantly positive.

For all capital equipment, South African imports exceed exports by a large margin – in 2008

and 2009, imports were three times larger than exports. In respect of mining equipment,

however South Africa is a net exporter. In mining equipment, South Africa is running a

negative trade balance with the rest of the world, but South Africa has a strong positive trade

balance with Sub-Saharan Africa (SSA).

South Africa Mining Equipment Exports and Imports ($‟000), 2005 -2009

2005 2006 2007 2008 2009

Trade with world

Exports 3,292,256 4,721,750 6,200,709 6,742,700 4,130,184

Imports 3,173,526 4,285,689 5,987,691 6,174,743 3,668,875

Trade

Balance

118,730 436,061 213,081 567,957 461.309

Trade with SSA

Exports 786,793 1,025,801 1,494, 146 1,935, 971 1.542,666

Imports 10,972 13,423 15,317 24,485 32,232

Share of

Total Exports

24% 22% 24% 29% 37%

Source: COMTRADE database accessed through WITS on 22/02/2011

Moreover, the dense network of mining production and services companies results in a high

local value added for this sector – estimated at approximately 90% (South African Capital

Equipment Council Interview).

Interviews with mining equipment companies showed a clear link between exporting and

technology development. In all cases, exporting relied heavily on the development of

technology. In most cases this entailed significant technological development – sometimes

embodied in patents, but frequently safeguarded in more informal ways. Technology

development tends to be very largely focused on improving and enhancing application. On

the product side, new products tend to be improvements and adaptations to meet the demands

of new situations – spiral washers for use in oil sands in Canada as opposed to coal deposits

in South Africa would be illustrative.

Technological development clearly underpins and is a necessary component of success in

export markets. At the same time, competition in export markets is intense in this area – and

consequently fuels further technological development.

2.3 Further Indications of South Africa‟s advanced technological competencies

At the product level: South Africa is a world leader in a host of mining equipment products.

These include spirals for washing coal; pumping up water; hydropower; tracked mining;

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underground locomotives; ventilation; shaft sinking; turnkey new mine design and operation

and many others. The particular “area” where South African expertise is particularly

advanced and at the global frontier is in deep level mining and associated competencies.

South Africa is much weaker in so-called “yellow metal “areas – such as mining vehicles –

where scale economies are critical and where large TNCs dominate.

Outside of mining, there are a number of other areas where South Africa has leading global

products – transport and haulage equipment and processing equipment for example. In many

cases, the mining sector provided the initial source of demand and successful domestic firms

then branched out into other areas.

At the company level: a significant number of South African firms compete effectively with

global TNCs, in South Africa, in Africa and other regions. A number of these companies are

large, but there are also significant numbers of medium and small sized companies. It is

worth noting that the industry receives, at this time, very little support from government (a

point to which we return later).

3. Why is South Africa Competitive?

The answer may seem obvious – it is the result of having a mining industry that is very large

and long established. Indeed, this is an important part of the answer. However, this is only a

part of the answer. There are other aspects of South African mining industry besides scale

and long history that are important and there are other factors at play that have encouraged

the development of local capabilities and capacities.

Mining is highly location specific. No two mines are the same – geology and other conditions

vary hugely. The result is that what can be called “applied competencies” have to be

developed with reference to particular deposits and generally “on site.” Where local

conditions are particularly specific and demanding, the necessary applied competencies will

be correspondingly expanded. In South Africa, local conditions were highly specific and

demanding. This is most evident in respect of gold mining which had to be mined in hard

rock at deeper levels than anywhere else.

Other major South African minerals occurred in a form that was difficult to exploit. Coal in

South Africa is very abundant, but almost all of it is of low quality. Platinum was prevalent

but found in a form that could not be exploited by known methods. South Africa was able to

develop coal and platinum metallurgy that allowed for what were hitherto unprofitable

deposits to be profitably mined. There were many spin-off capacities. South African coal had

to be washed to remove impurities. This led to extensive development in spirals for washing

– a product which is now applied in a number of new areas such as tar sands and in which

South Africa leads the world. “We made it work because we had difficult coals.7”

A number of factors seem to have been key in allowing the development of local

technological capacities attendant to mining.

The first of these is simply scale. The scale and the duration of mining activity provided the

possibility of amortising any investment in enhancing technological capacities over a larger

output and over a longer time period.

7 MD of the leading export company

17

The second is the structure of the mining industry. It was the larger mining houses that had

the wherewithal and the incentive to undertake and support research. One of the key

functions of the Chamber of Mines was to undertake research and the Chamber‟s research

organisation COMRO supported and funded considerable research activity. While research

efforts were cooperative, historically one large mining finance group contributed the majority

of resources to cooperative research efforts (Pogue, 2006:7).

The third is economies of scope. The existence of a wide diversity of minerals and mines

allowed for specialist companies to arise that could more effectively and economically ad apt

and develop products and solutions for individual customers. Economies of scope are

important in encouraging the development of specialist suppliers.

A final factor is the development of structures, organisations and policies that sought to

develop national innovation capabilities. In various ways, and for complex reasons, the South

African government has sought to enhance technological capacities. This process of

encouraging the development of technological capabilities begun very early on, indeed prior

to Union. The national system of innovation interacted closely with the mining industry.

“With the formation of the Union of South Africa in 1910, a South African national system of

innovation came into existence. It drew upon the various colonial and national innovation

systems that preceded it. During this period the private sector, primarily the Witwatersrand

gold mining industry, provided significant guidance over and direction within the national

system of innovation (Pogue, 2006:7).

Thus, explicit policies to develop and advance technological capabilities played their part.

However, government was not ubiquitous in the development of local technological

capabilities. The cyanide-based extraction technology, for example, was developed in the

Zuid Afrikanse Republic. “Yet the ZAR provided no technical or educational support for the

mines, Despite its terrific economic impact, the ZAR treated Witwatersrand gold mining as

am enclave that needed accommodation rather than as an emerging sector of its national

economy. The Witwatersrand community nevertheless established a local innovative system,

reliant on linkages with the Cape Colony and the international mining community (Pogue,

2006:7).

An important factor enhancing the development of the industry has been the development of

a geographic cluster and attendant supporting institutions. Singer‟s concern that Marshallian

external economies would not prevail in NR based activities, clearly does not apply to the

supplier industries of mining equipment.8

While the industry is geographically fairly widely distributed much of the mining equipment

industry is located on the East Rand, principally in Ekurhuleni, and largely in Farrramere.

Utilising a database of 678 companies, the South African mining inputs cluster has the

following characteristics: 9

Ownership – 33% of firms are foreign; 67% local. Foreign firms are specialist

consultants or OEMs.

8 “..the geographical clustering of input companies in Gauteng has brought with it over time a number

of key benefits, most notably increased firm productivity, sectoral growth (particularly in the engineering, metal products , electrical and non-electrical machinery sectors), and improved product competitiveness, both in the local and international market.” (Walker and Minnitt, 2006:14) 9 The data are from Walker and Minnitt, 2006: 13- 17.

18

Employment – 95.000. Average number of employees per firm 239.

17 large firms account for almost 60% of employment. The majority of firms are

either subsidiaries or private companies. Only 7 firms are listed on the JSE.

Imported items are generally medium to high tech component type goods

The local FET college provides training in skills that are needed by the industry. The South

African Capital Equipment Export Council SACEEC) supports exporting and promotes the

industry generally.

The South African Capital Equipment Export Council provides a platform for capital

equipment exporters, providing information and services to promote exports. SACEEC

facilitates the sharing of export related facilities and manpower, researches new markets and

disseminates export leads, and encourages the development of export consortia and the

sharing of facilities in global markets. SACEEC also works with Government on an ongoing

basis to ensure that generic policies and priorities are aligned with the sector development

strategy.

There are a total of 112 members who each pay a nominal fee to join the council and an

annual fee to remain members. This constitutes a significant share by number of exporting

firms and the overwhelming share of exports by value. SMMEs make up 65% of the

membership. 95% of members are BEE compliant. All of the ten firms interviewed were

active members of the SACEEC.

4. Strengths and Weaknesses

The short-medium term prospects for mining equipment and specialist services look

promising. Much depends, of course, on future investments in mining, but indications are

positive. Mining investment is particularly likely to grow in Africa – home to a large share of

global exploitable deposits. Given the importance of the regional market, and the strong

presence of South African based mining companies in the region, this will be particularly

beneficial to South African exporters.

However, company interviews suggest a less sanguine future. Three major problems were

identified in company interviews - skill shortages and inadequate training; deteriorating

public research and linkages with tertiary institutions and access to finance.

Skill Shortages

There has been a decline in the skills and competencies available for the mining sector in part

due to the migration of skilled workers abroad. For a skill intensive sector, firms in the capital

goods sector identified the shortage of skills as a major constraint. Skill shortages exist at the

managerial, artisanal and technical levels such as welders and boilermakers. While wages for

artisanal and technical workers are lower than in Europe, they are considerably higher than in

other industrializing countries. The wage gap is particularly large with respect to countries in

Asia like China which are increasingly developing capacity in the capital goods sector.

The number and it would seem the quality of mining engineers and related skills has been in

decline. The Chamber of mines described training at the universities as “pitiful.” The

University of the Witwatersrand – once recognized as a premier institution for producing

mining and related high- level skills - and the University of Pretoria has seen significant

19

declines in their capacities in this regard and is said to have one permanent member engaged.

By contrast Australia has seven universities offering mining engineering and programmes.

Since at least the early 1990s, mining Houses, the parastatals such as the railways and

harbours and the science councils have all significantly reduced their training. This has

resulted in a substantially reduced the supply of skilled technicians and artisans.

This skills shortage is being exacerbated by aggressive recruiting on the part of competitor

firms, especially in Australia, who have been very successful at recruiting skilled South

Africans. By contrast, South African firms complain that they have major problems in

securing the necessary work permits for expatriate labor. This affects both locally owned and

particularly foreign owned firms operating in South Africa.

The ES data provide further evidence of the constraints in the supply of skills that is faced by

capital equipment producers and exporters. The 2003 ES data had 84 capital goods firms and

the 2007 ES had data for 145 capital goods firms. Exporters and non exporters as well as

foreign owned and domestic firms in the sector in the 2003 survey cited skills shortage as the

top constraint. The 2007 ES data had firms citing crime as the top constraint followed by

skills shortages.

In a recent survey, 50% of the 45 firms supplying goods and services to the platinum group

mining (PMG) sector reportedly surveyed regarded the shortage of engineering and technical

skills in South Africa as “…the main obstacle to future growth and dynamism in the PGM

industry and 90% feel it is an important determinant for firm-level competitiveness.”10

On the supply side, worker training is poorly provisioned. The SETAs are regarded by firms

as ineffective and the system as inflexible. Exporters of mining equipment were of the view

that the number and quality of mining engineers and related skills is on the decline. The

Universities of the Witwatersrand Pretoria that were once recognized as a premier institution

for producing mining and related high-level skills have both seen significant declines in their

capacities in this regard. By contrast Australia has seven universities offering mining

engineering programs.

Firms have responded to the shortage of skills by recruiting skilled personnel from abroad.

Some foreign owned firms had to bring in more staff from their operations abroad than they

would have had the skills been available locally. However obtaining work permits have been

cumbersome and the main response has been for firms to train locally. Training is fairly

widespread in the industry, particularly on the part of foreign owned firms. Data from the

2003 Enterprise Survey showed that 76 percent of foreign firms in the sector offered training,

for an average of 42 days for a skilled and 50 days for an unskilled worker. However, there

are some indications that the number of firms offering training has declined. In the 2007

survey, only 59 percent of foreign firms and 44 percent of domestic firms offered training

The skills shortage is leading to companies moving some of their operations overseas. These

firms are finding it advantageous to shift their more labor intensive operations outside of

South Africa– notably to China. For example, one of the largest South African operations

now fabricates 20 percent of needed capital equipment in China whereas previously

equipment was produced exclusively in South Africa. A number of firms, particularly the

larger operations that can manage extensive outsourcing operations, predict that sourcing

product from outside of South Africa will increase rapidly. Of particular concern here are the

10

Lyndall, 2009:117

20

wage rates of technicians and artisans. They are far more highly paid in South Africa and

moreover in very short supply.

But it is not only manufacturing operations that are likely to be relocated outside of South

Africa, the same trend is evident with respect to design and development work. One of the

largest South African operations undertaking extensive design and development has decided

to develop a new center abroad and predicts that in several areas it will have its main design

centre in Australia. Some of the major mining companies are similarly locating their research

and development activities abroad. The country favoured is almost invariably Australia; with

the main attraction being the availability of highly skilled labour and the linkages to well-

funded research centres.

There is now a perceived decline in the local competencies available due to large number of

skilled professionals moving abroad (especially to Australia) from the sector and a decline in

the research competencies in the local universities, which could imply South Africa‟s capital

goods sector possibly losing its global competitiveness to countries like Australia that

continue to increase their competencies in the sector.

Declining Industry- Research Linkages

Apart from accessing the CSIR for testing and verification, there is limited industry

engagement with the science councils. Moreover, the few linkages that do exist are said to be

becoming more limited over time. This is true particularly in relation to mining, but also with

regard to metallurgy and metal refining.

There is a widespread view that while both the CSIR and MINTEK have some capacity, there

has been a clear deterioration over time. Skilled personnel have been lost and a number of

programs closed, particularly at the CSIR. The latter is said to have hardly any research

capacity remaining in relation to mining. There has been major decline in mining related

activity here. Formerly COMRO – the research arm of the Chamber of Mines – undertook

very significant research on behalf of the industry. The CSIR which absorbed COMRO

continued to have large scale mining research projects – principally in trackless mining and

rock engineering. However, these research programmes had a limited life and currently the

capacity at the CSIR has been depleted almost to distinction. It is widely stated in the

industry that MINTEK has seen a significant decline in its capacities. The Council for

Geoscience is similarly said to be experiencing difficulty and loosing staff.

Few of the firms interviewed had significant links with the science councils – and where they

did, these links were becoming more limited over time

In terms of university based research, activity is also depleted. While there is certainly some

capacity and some of that is widely recognized as world class, the number of specialist

centers is very limited. This is particularly true in respect of mining. There is no specialist

mining research units at any of the universities in South Africa although attempts are now

being made to establish a center for mining mechanization at the University of the

Witwatersrand. There are very few specialist research centers.

The deterioration in publicly funded research for mining, metallurgy and related activities in

South Africa has resulted in firms making much more use of privately funded research. There

appears to have been a significant growth in local research consultancies that serve the

21

industry that undertake research or provide specialist consultancy services. Very few of the

firms interviewed engaged with the universities – and those that did, did so in very limited

ways. Local firms are increasingly accessing publicly funded research institutions and

universities located abroad, particularly in Australia.

Access to Finance

A number of the firms interviewed complained that export finance was limited, which

sometimes inhibits their incentives to increase technology related investments as well as their

access to the global knowledge pool. The export council in particular stressed this issue and

indeed export finance, particularly pre-shipment finance, is one of their central requests to the

government. The SACEEC which works with the government on an ongoing basis to ensure

that generic policies and priorities are aligned with the sector development strategy also

regards this lack of export finance as particularly injurious to new exporters who are unable

to accept large export contracts due to the lack of adequate finance. Finance is often not

available and where it is, it is said to be very costly.

New entrants are also constrained by the lack of venture capital available to finance

technology-based start-ups. Potential new entrants cannot find the finance that they require to

commercialize research or seed funds required to launch new products. Very few firms have

been able to get preferential finance from the IDC.

Firms have utilized the export council to lobby hard for government support for lower cost

finance. The IPAP makes provision for concessionary finance for productive activities and

particularly for local firms that are bidding for government contracts in relation to the

infrastructure program. However, this excludes any support to exporters.

Mining investment in South Africa has been limited. For a variety of reasons, related

principally to policy over mineral rights, also infrastructural bottlenecks and lack of local

finance for new mines on behalf of smaller companies, investment in the mining industry

actually fell during the commodities boom. This then revived somewhat but remains limited.

The output of gold has been declining steadily and this is likely to continue. The “demanding

clients” that have underpinned the growth of local capacities in mining equipment, the large

scale mining investments, remain but are much less in evidence.

On the manufacturing side, a number of companies have begun moving significant parts of

production elsewhere – notably to China. Companies are finding it advantageous to shift their

more labour intensive operations outside of South Africa. One of the largest South African

operations now fabricates 20% of the K equipment for their in China. A number of firms –

more particularly the larger operations that can manage extensive outsourcing operations –

predict that this will increase rapidly. Of particular concern here are the wage rates of

technicians and artisans – who are far more highly paid in South Africa and moreover in very

short supply.

But, it is not only manufacturing operations that are likely to be relocated outside of South

Africa, the same trend is evident in respect of design and development work. One of the

largest South African operations undertaking extensive design and development has decided

to develop a new center in abroad and predicts that in several areas it will have its main

design center in Australia. Even companies that are enjoying considerable growth and export

success underpinned by technological advance have begun to relocate their research and

22

design functions abroad. Some of the major mining companies too are locating their research

and development activities abroad. The country favoured is almost invariably Australia.

The contrast with Australia is evident. Without going into any detail, it is quite evident

that in all of these dimensions, Australia is significantly out-performing South Africa. 1112

South Africa lacks the institutional and policy supports that will be necessary to

ensure future growth. Australia by contrast has these supports. Australia is increasingly

becoming the location of choice for research and development on the part of South

African firms and indeed of South Africans themselves. The number of South Africans to

be found in Australian mining companies and research establishments is remarkable.

This was not always so. As one interviewee put it – “In the 1980s all the clever stuff was

in South Africa. This was the magnet. We attracted people from all over the world. Now

the magnet is in Australia and we are losing our people, our talent and even our

companies to them.”

The current success of the South African mining equipment and related activities and

services rests in an earlier period of expansion of the mining industry and of elaborate

public support for research and training. It is the companies and the people who were so

nurtured and supported who are now exporting globally and undertaking technological

advance at the global frontier. However, there are clear signs that this will not be

sustained in the future. Skill shortages, declining investment on the part of local clients

and a lack of institutional and policy support collectively pose a significant threat, temper

current success and are likely to severely curtail future prospects.

5. Current Policies and supports

The South African government has selected a number of technologies for support. These are

outlined in the Department of Science and Technology‟s 10 year plan (DST, 2008). These

technologies include space science, energy, climate change, biotechnology and human and

social dynamics. Biotechnology, for example, has received over R0.5billion in direct support.

Mining, by sharp contrast, receives no mention in the 10 Year Plan. The general supports that

are available to innovation in any industrial sector have a very limited impact on research in

the mining and mining related companies. For example, none of the companies interviewed

made extensive use of SPII. Some companies do claim the R&D tax credit, but the applied

nature of the research and design results in many of the expenditures related to technology

development undertaken by firms not qualifying for support.

Beneficiation

The main thrust of government policy with respect to mineral products is downstream

beneficiation. Beneficiation features strongly in the National Industrial Policy Framework

and in the Industrial Policy Action Plan (IPAP). The IPAP envisages minimum beneficiation

levels for ten “selected commodities.” These commodities are not specified, but presumably

entail all of the major mineral products. Thus, the IPAP Key Action Programme (KAP)

12.5.1. specifies “Setting minimum beneficiation levels for key commodity chains. Nature of

the intervention: The Department of Mineral Resources (DMR) to establish and define

11

Australia has extensive networking and collaboration between companies and with publicly funded research. This has been described as a “dynamic web.” Dodgson and Vandermark, 2000. Se also Upstill and Hall, 2006.

23

minimum levels of beneficiation for each of the 10 selected commodities. This will lay the

foundations to create specific value chains, including in 5 instances up to the fourth level of

minerals value addition. “ DTI, 2010; 59.

There is widespread support for beneficiation policies. The rationale for such policies appears

to be evident.

“Our natural comparative advantage in the underlying resource-based industries along with

additional factor endowments (especially relatively inexpensive electricity costs) provides us

with an opportunity to be competitive in downstream value addition. The end-game is to

acquire a competitive position as far down the value chain towards finished product

production as is possible.

The rationale underlying beneficiation relies heavily on access to feedstock at competitive

prices. Proximity to stocks of minerals implies an association with downstream processing as

a natural accompaniment to the primary mining activity.” (Jourdan (n.d.): 7-8.

However, the International Panel on ASGISA has a very different stance. The panel argued

that “..both theory and practice provide reasons to question the presumption that downstream

processing is an appropriate development path. The skills and other inputs required to process

raw material and market finished products could be very different from those required to

mine or grow them….Moreover…as transportation costs have declined, and global markets

have become more integrated, the advantage of proximity to raw material production has

diminished.” (Hausmann, Klinger and Lawrence, 2008a:1)

Utilising a large international data set, the evidence is clear that countries that produce

commodities do not move downstream in their development Forward linkages have only a

very limited impact as to where a country will emerge as competitive (Hausmann, Klinger

and Lawrence, 2008:)

Accordingly, in their final report, the International Panel were unambiguous:

“Beneficiation should not be used as the basis for selective intervention and industrial

promotion. Greater processing of natural resource exports does not constitute either an easy

or a natural next step in the process of structural transformation, especially in South Africa.

Downstream sectors already benefit from proximity to input and South Africa‟s remoteness

from the rest of the world. If these sectors have not developed on their own, it is prima facie

evidence that either they face low social returns or confront obstacles similar to those of other

sectors. Privileging beneficiation is unwarranted and it takes government‟s attention away

from other opportunities that may have more potential to create export jobs in South Africa.”

(Hausmann, 2008: Recommendation 16)

Mechanisms to encourage downstream beneficiation employed by government include excise

taxes (diamonds) and requiring firms to lower prices to domestic consumers (iron ore and

steel). However, these and other measures to “force” beneficiation will result in lower

returns, lower levels of investment. This, in turn, will have knock-one effects on the

industries which supply the affected minerals with capital good and intermediates.

24

6. Developing an Alternative Strategy and policies in order to Make the Most of

Commodities.

We saw earlier that analysis of patent activity suggests that indeed mining equipment is the

only substantial sector where a major cluster of South Africa firms has significant expertise

located at the global technology frontier. Patent data is reinforced by the presence of a

number of leading and indeed unique South African products and South African firms which

are global leaders in the field as well as success in export markets.

Moreover, the relative success of mining-related capital equipment exports is linked to South

African engineering and project management capabilities more broadly and this suggests that

there are potential significant spillovers into other areas. All this strongly suggests that this

sector in particular needs to feature far more centrally in the government‟s technology

objectives. 13

The challenge with respect to this sector is twofold. First, it is to maintain and enhance the

competiveness of the sector, particularly in the light of rising competition in relation to

manufacturing (principally from the Far East) and a rising challenge in relation to knowledge

and innovation (principally from Australia). To raise competitiveness, enhanced support for

mining related R&D, in tertiary education institutions, in science councils and also at the firm

level is required. Enhanced support for training should be also provided– particularly in

relation to high level and technical/artisanal skills.

Second, the challenge is to support the spread of these technologies and companies into new

non-mining related products and markets. To some extent this is already happening.

However, there are knowledge and information gaps whereby firms fail to see the potential

application outside of known areas and customers and there are costs and risks of new

product and new market development. The fact that firms who move into new areas take risks

while much of the benefit of success falls to follower firms (second movers) constitutes a

market failure that potentially provides a “space” for public policy. The South African capital

equipment ‟sector‟ is highly organised and cohesive with an active export association. Hence,

the proposal is that a government task team investigates, in close consultation with the

industry and export association, how firms might be encouraged to apply their technological

capacities to new products and new markets.

The spread of frontier level technologies outside the mining sector into new products and new

markets, the lateral movement of existent technological competencies should be encouraged.

We accordingly here propose a financial support to encourage innovation – the development

of new products for new customers in the following method:

A fund could be created which could be accessed by any company, existent firms or new

firms or start-ups. This fund would support firms utilising technological competencies

developed in relation to mining to develop products for application outside of mining and to

enter into new export or domestic markets. It is important to ensure that support is also open

to new entrants since the lateral spread of technologies is often performed by new entrants.

The very existence of such a fund would constitute a signalling device to firms in the industry

as to government commitment to enhance new product and new market development and the

13

Chang proposes a very different approach. Chang argues that countries like South Africa should use their resource rents to invest in alternative areas – such as electronics or telecommunications. Chang, 1998.

25

associated technological competencies in their sector. Support would be given in the form of

provision of “public goods” particularly training, market research and costs of entering

markets such as establishing sales outlets, repair and back-up facilities etc. Support would not

be given for capital equipment. Applications for support should be judged on a competitive

basis and by an arms-length group composed principally of persons with business know how

and knowledge of the industry.

Downside risk can be limited in two ways. Firstly, support would be given on a matching

grant basis i.e. firms would bear a part of the costs. Secondly, monies for support could be

capped and would only be drawn down where and when there were successful applicants.

This approach is different from that of Haussman and Rodrik (2003), who propose policies to

encourage new firms and new products – so-called “self-discovery.” The Hausmann and

Rodrik approach is an “open architecture” whereby support is made available to any new firm

or product. The approach here is different in so far as there is direct support to established

firms with existent competencies as well as new entrants that can access such competencies

as evidenced by their command of technology, their innovative products and their success in

global markets. This approach has the distinct advantage of building on and broadening out

from existing competencies and firms with a track record i.e. already proven as opposed to

going in search of something that is altogether “new.”

It also differs from the approach to identifying sectors for support advanced by Justin Lin

(Lin and Monga, 2010). Lin‟s approach assumes that catch-up countries are behind the

technology frontier in all activities. However, middle-income countries, such as South Africa,

are likely to have sectors/activities that, for a variety of historical reasons that are at or close

to the technology frontier. In this event, one key aspect of technology and industrial policy

would be to encourage the lateral movement of such competencies into new areas/products

and markets – more especially export markets.

Finland is the outstanding example of a successful country whose growth was heavily

dependent on broadening its capacities from natural resource based industries, principally

forest related, into machinery and engineering industries and later into ICT and electronics.

The key factors that underpinned this diversification were“… the persistent emphasis given to

higher education, linkages and spillovers among various industries, and the emergence of

new knowledge-based industries.”14

Government adopted a systems approach to industrial

and technology policies. Strong linkages as between research organizations, universities,

firms and industries in relation to knowledge production were promoted and policy was

formulated through public-private partnerships involving economic research organizations,

industry federations and firms.15

Of course, the Finnish example cannot be exactly replicated in South Africa. But, the

approach that we are proposing here – particularly the emphasis on diversification through

promoting linkages and spillovers, a systemic approach to an integrated industrial and

technology policy and the development of policy in close collaboration with the firms and the

industry - draws much from the Finnish experience.

14

Dahlman, Routti and Yla-Antilla, 2009: 3 15

Dahlman, Routti and Yla-Antilla, 2009: 8

26

Appendix 1: Interviews South African Capita Equipment Export Council (x2) Multotech Outotec Chamber of Mines Murray and Roberts Turgis Consulting and Wits University Mintek Hydropower Equipment Bell Equipment Bateman Engineering Urethane Moulded Products Sandvik Atlas Copco Group 5

27

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